Price gains for gold, silver, amid bullish outside market forces

Gold and silver prices are higher and hit 3.5-month highs in early morning U.S. trading Tuesday. The metals are boosted by a slumping U.S. dollar index and rising crude oil prices. The precious metals gains come as the crypto currency markets have been under selling pressure. Bullish technical charts for gold and silver are also inviting speculators to the long side of the metals. June gold futures were last up $4.70 at $1,872.30 and July Comex silver was last up $0.416 at $28.69 an ounce.

Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. Global investor and trader risk appetite has improved Tuesday. For the moment at least, the marketplace is not paying much attention to the escalating fighting between Israel and Hamas that is the fiercest since 2014. The inflation debate remains close to the front burner of the marketplace. History shows that rising inflation has tended to benefit hard assets like the metals.

In overnight news, first-quarter Euro zone gross domestic product fell 0.6% from the fourth quarter of last year and was down 1.8%, year-on-year. Those numbers were in line with market expectations.

The key outside markets today see the U.S. dollar index lower and hitting a nearly three-month low. Meantime, Nymex crude oil prices are higher, hit a two-month high overnight, and are trading around $66.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.647%. The German 10-year bund yield is trading at -0.109% and the U.K. 10-year gilt yield is 0.881%.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, new residential construction and the ISM semiannual business economic forecast.

Technically, June gold futures bulls have the firm overall near-term technical advantage amid a seven-week-old price uptrend in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $1,808.40. First resistance is seen at $1,881.00 and then at $1,890.00. First support is seen at the overnight low of $1,865.50 and then at $1,850.00. Wyckoff’s Market Rating: 7.0

The silver bulls have the solid overall near-term technical advantage amid a seven-week-old price uptrend in place on the daily bar chart. Silver bulls’ next upside price objective is closing July futures prices above solid technical resistance at $30.00 an ounce. The next downside price objective for the bears is closing prices below solid support at last week’s low of $26.78. First resistance is seen at the overnight high of $28.90 and then at $29.00. Next support is seen at the overnight low of $28.275 and then at $28.00. Wyckoff’s Market Rating: 7.5.